27.10.202012:16 Forex Analysis & Reviews: Trading idea for the USD/JPY pair

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After declining strongly in the market last week, the USD / JPY pair retraced to the nearest technical resistance, which is located at the level of 105.

Then, yesterday, the level was passed with false breakouts from the highs of Thursday and Friday, thus, the next action now is to open short positions, in order to decrease the price towards the level of 104.3 (first target):

In fact, the quotes have already formed an ABC pattern on the daily chart, in which "A" is the short initiative on October 21.

If short positions were continued to be set up in the market, the pair could reach the second target, which is the level of 104. Such would follow the framework of the classic Price Action and Stop Hunting techniques.

But of course, there is still the need to control the risks in order to avoid losing profit. As we all know, trading in this market is very precarious and uncertain, but also very profitable as long as we use the right approach.

Best of luck!

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